Households to pay more for energy than they did last winter despite lower price cap, research shows

Hundreds of thousands of households will nonetheless pay more for energy than they did last winter despite Ofgem’s lower price cap, figures present.

The typical month-to-month energy invoice paid by households between January and March 2024 can be £32.33 more costly than it was over the identical interval in 2023, research by Residents Recommendation suggests.

Last winter, households paid a median of £141.33 monthly for energy, due to authorities assist schemes. However Britons are estimated to pay £173.55 monthly this winter, in accordance to the research.

It comes because the regulator lowered the energy price cap, that means typical households will see annual payments fall from £2,053 to £1,923 from 1 October.

Nevertheless, the charity warned the revised cap will “do little” to assist lower earnings households and “rising numbers” of individuals didn’t come up with the money for to cowl important payments.

Gillian Cooper, Head of Energy Coverage at Residents Recommendation, stated: “Growing numbers of individuals we assist are in a destructive price range, the place they merely don’t come up with the money for coming in to cowl even simply their important payments.

“The subsequent few months will push households like these over the sting. Our knowledge suggests will probably be as dangerous, if not worse, than last winter. Authorities should step in shortly with more focused assist for the households who want it most.”

Britons are estimated to pay £173.55 monthly this winter for energy, in accordance to research

(PA Wire)

The price cap, which units a most price energy suppliers can cost customers for every kilowatt hour of energy they use, continues to be £646 larger than it was in October 2021, when it got here in at £1,277.

Wholesale costs hit report highs in Britain and Europe last yr after Russia’s invasion of Ukraine restricted gasoline provides.

Though costs for gasoline and electrical energy have fallen by 85 per cent and 80 per cent respectively, there may be nonetheless market volatility and the price cap stays 60 per cent larger than it was two years in the past.

Nationwide Energy Motion additionally warned the price cap did not “defend these” who “merely can not afford the price of retaining heat”. It urged “direct authorities intervention” by means of “invoice assist, social tariffs and energy effectivity”.

It stated: “For a 3rd straight winter, weak households will face stubbornly excessive payments and an rising energy debt mountain. This winter there isn’t any Price Assure and no £400 Energy Payments Assist Scheme.

“The absence of focused additional monetary assist this winter to scale back the energy payments of probably the most weak will imply hundreds of thousands of unheated properties and spiralling debt.

“It would add to the queues of individuals for the NHS and for the overstretched assets of charities like Nationwide Energy Motion.

“The UK Authorities can nonetheless act – by straight decreasing energy payments through focused energy reductions or a more focused Energy Price Assure for low-income and weak households.”

Each three months, regulator Ofgem opinions how a lot firms can cost for every unit of energy, reflecting the associated fee paid by suppliers for wholesale energy, prices to provide energy on the community and VAT.

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